How much do you need as savings in the UK?
The amount of savings you should have in the Uk is dependant on your life plans, goals, your attitude to saving and risk.
There are many stats stating how much the average Brit has in savings. Some quote £100 or less some quote more. Regardless of what the average person has as savings, you need to have enough savings to cover you in a time of crisis.
It is hard to say exactly how much savings you should have in the UK but we may be able to agree on a minimum threshold needed to save at each key stage f our lives. In this case, we mean life’s emergencies or plans people will usually carry out at key stages of their lives.
Saving is a very difficult thing to do. Most people struggle with the mental strain or the physical side of saving but in the end, we all seem to avoid doing it although we know how beneficial it is to us.
Our savings are now seen more as emergency pots rather than saving pots that can be used to invest or acquire assets.
So when drumming up a figure of how much savings we should have, it may be best to imagine how many months we could be in need of covering our fixed monthly expenses without the help of any third parties and then save for this amount.
Imagine you lost your job and had to go without any pay for 6 months. How much will you need to live off?
This amount is the amount you need to save.
You can work this out by calculating what your average monthly expenses are. You should then look to extract your fixed monthly expenses and aim to save 6 months worth of this amount or more as your savings buffer.
I know, looking at how much you may need to save could almost be depressing. Luckily there are services there that will look after your depression and anxiety with help that works.
If you need financial advice and you live in the UK then you could contact the Money Advice service over the phone or via chat for impartial advice.
You can also contact the debt charity “Step Change” if you are in debt and need help.